Capital Share Discussion Threads

[gleach23] 02/11/2018 12:11

Not many shares available to buy online this morning which hopefully bodes well, along with the 25k buy @ 38p.

Still not received my AJ Bell dividend 'paid' on 5th October. Completely unacceptable.

[gleach23] 25/10/2018 17:26

...and today a 5 year contract extension. The story remains positive here. One would expect the share price to react in a similar manner sooner or later.

[gleach23] 24/10/2018 08:58

Received my reply - pretty much as you suggested rhomboid - delays all to do with being paid by cheque which seems somewhat archaic.

On a more positive note, a nice contract win announced this morning. The first in Cote d'Ivoire to add to the momentum in West Africa.

[gleach23] 22/10/2018 13:49

Thanks again...that all makes sense. I wrote to AJ Bell last night asking for an explanation. It'll be interesting to read their response in light of your comments. I'll be on the lookout for a copy and paste :)

[rhomboid] 22/10/2018 12:45

It’s because U.K. dividends are settled in CREST which is guaranteed as cleared funds on receipt..CAPD used to be paid by cheque to brokers ..the cheque clearance can be reversed by the bank on whom it’s drawn for something like 14 days after issue but not thereafter...hence AJ Bell waiting for that period to elapse before crediting to your account..overseas bank transfers also have a similar reversal clause.

IIRC AJ Bell had an overseas company go bust within the notice period & administrators recalled the payment leaving AJ Bell as an unsecured creditor

[gleach23] 22/10/2018 11:58

Thanks rhomboid...I'm sure you're probably right although I don't completely follow :) Are you suggesting this is a particular administrator that CAPD happen to use (like SOM) and the fact that it's a foreign currency payment is just coincidence? I've had 4 other dividends roll in to my AJ Bell account since 5th Oct bang on time.

[rhomboid] 22/10/2018 11:29

I always had the same issue when I held CAPD with AJ Bell...it also affects Somero...apparently it’s not the fx causing the delay but different rules surrounding timescales within which credits can be reversed ...other brokers seem oblivious to the risk but AJ Bell are uber cautious as they’ve lost money on a reversal of dividend payments by an administrator or similar in the past iirc

[gleach23] 22/10/2018 10:14

Ridiculous that I haven't received the dividend in my AJ Bell account. It was paid on 5th Oct! Just because the dividend is paid in foreign currency? Even my Selftrade account holding was credited on 12th. Anyone else having similar issue?

[gleach23] 15/10/2018 12:07

Cheers astonedt - reads well and bolsters optimism here

[gleach23] 11/10/2018 19:12

Remains a frustrating hold on another positive update. Looks like someone offloaded 22k @ 33.5p which caused a wobble and an opportunity for me to top up - which unfortunately I missed :(

[rivaldo] 11/10/2018 14:37

At this m/cap, realisations below book value would still provide substantial asset backing for the current share price, without any value for the ongoing business.

Particularly as CAPD have always maintained that their asset base is always well refreshed and the best available in the market.

I suspect we'll see a bounce as the market takes in the confidence going forward.

[pugugly] 11/10/2018 14:11

NTAV can be a misleading measure - very much depends on the accuracy of the depreciation of the major asset - drilling rigs - If no or reduced demand then realisation might be well below book value - Example 2nd hand diesel cars - Not saying that this is the case but book can be misleading Recent example is GE in the USA

[dangersimpson2] 11/10/2018 13:54

yeah strange that this gets sold down so much on positive results - fall takes them below NTAV and on a EV/EBITDA of something like 2.

[rivaldo] 11/10/2018 11:15

Today's update was very good - and confident - but on a day like this in the market no small cap is likely to make progress. Nevertheless, now with a cash pile and a very positive outlook we should expect a good forthcoming set of results.

And of course there's the high net asset backing to support the downside from here.

Finncap retain their 85p price target and are extremely positive.

[pugugly] 11/10/2018 09:26

OK A bad dsy in the markets but trading update appears to have gone down badly PLUS miners being hammered so possilby Mr Market suspects less demand of drilling services in the near future?
Now another 1 year breakdown -
Declaration watching but not yet buying.

[gleach23] 19/9/2018 14:27

OK cheers :)

[dangersimpson2] 19/9/2018 14:16

oh and I picked the gross amount rather than the net amount that is in the summary Note 8:

During the six months ended 30 June 2018, the Group acquired $5.4 million (2017: $4.2 million) of drilling rigs and other assets to expand its operations and for the replacement of existing assets.

The Group disposed of property, plant and equipment with a net carrying amount of $0.4 million (2017: $0.5 million) during the period. A loss of $0.3 million (2017: $0.1 million) was incurred on the disposal of property, plant and equipment.

At the end of each reporting period, the Group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets may be impaired. As at 30 June 2018, there were no indication of impairment.

Doesn't really matter tho.

[dangersimpson2] 19/9/2018 14:11

FY19 might be a bit soon to see 60% utilisation average over the whole year but it shows where they would be on a running basis if/when they get there.

[gleach23] 19/9/2018 14:07

Thanks DS. A revenue projection for next year of $128.6m should get things moving, so hope you're in the right ball park.

By the way, I did notice the 2018 H1 report has $4.7m for Capex whereas you have $5.4m?

[dangersimpson2] 19/9/2018 13:30

Medium term they are targeting about 60% utilisation in current market conditions due to redeployment of rigs to West Africa. I expect the ARPOR to soften slightly as the mix changes, however even without any progress in Tanzania this would look something like this:


2018 H1 FY19Fleet 94 94Fleet Utilisation 46% 60%ARPOR 200 190# Rigs utilised 43 56Rev $m 54.5 128.6COS $m 33.7 83.6Gross Proft $m 20.8 45.0GP margin 38% 35%Admin $m 8.3 17Depreciation $m 6.7 12Op Profit (EBIT) $m 5.8 16.0PBT 5.0 14.0Tax $m 1.5 4.2Tax % 30% 30%PAT $m 2.8 9.8EBITDA $m 12.5 28.0OCF $m 7.2 23.8Capex $m 5.4 8.0FCF $m 0.3 11.6



At the current price this is something like a P/E of 8, EV/EBITDA of 2.2 and EV/FCF of 5.5. If Tanzanian market improves there would be further upside.

[gleach23] 19/9/2018 12:59

Disappointing to have such little movement here. We haven't flatlined like this on the chart since the period last year waiting for the outcome of the Tanzania legislative changes.

Q3 trading update about a month away.

[dangersimpson2] 16/8/2018 14:09

Listened to the conference call today. They were fairly up beat. Redeployment of rigs to West Africa going well, getting enquiries in the new offices and should have a positive impact on utilisation in H2. Had the first increase in revenue in Tanzania for over 2 years, small in size but shows that some progress is being made over political challenges by the miners there. At this early stage trending towards upper end of revenue guidance for full year.

Given their dollar earnings, scope for revenue to grow with increasing rig utilisation and +20% dividend growth this year then I'm not sure today's negative reaction to results is warranted.

[mfhmfh] 16/8/2018 13:58

Finncap reiterates 85p target price today.

[deanowls] 15/8/2018 12:44

Just had a read through again. Eight rigs deployed already for Q3 so the outlook on whether this has improved and I expect it to as over 20 rigs redeployed would indicate a plan after a large amount went through a maintenance program last year